After the news that all other cryptocurrencies will be banned in India, with the exception of only a few cryptocurrencies, CNN’s India arm reported that cryptocurrencies will not be banned, but will be regulated, citing government sources.
Last minute news, “Cryptocurrencies will not be banned. A regulatory mechanism will be implemented to prevent abuse.” given in the form.
— News18 (@CNNnews18) November 24, 2021
According to the report, the government plans to establish a comprehensive KYC/AML mechanism in fiat money channels for transactions related to crypto money. With this, it is aimed to prevent the use of cryptocurrencies in activities that are illegal or contrary to national interests.
On the other hand, in a statement to CNBC, the CEO of Indian stock exchange Zebpay, Avinash Shekhar, stated that their talks with the government were positive. Shekhar said, “There has been a very positive response from the government. We spoke to the parliament’s finance committee about two weeks ago.” he said. According to the Zebpay CEO, the government is seeking strict regulation rather than a complete ban.
Bloomberg also wrote that the government does not have a full ban plan, but may limit access to exchanges to accredited investors.
The first news that cryptocurrencies will be banned in India has created fear among Indian investors. With the panic selling, the price of Bitcoin diverged by 3-4 percent from the average market price.
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